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Southern border fuel stations see drop in cross-border customers

March 31, 2026
in Business, Economy, Other Stories
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Fuel stations along the southern border, once crowded with Indian vehicles, are now unusually quiet. With prices nearly matching those across the border, the steady stream of cross-border customers has slowed sharply.

In towns like Gelephu, where fuel stations once remained busy throughout the day, the scene has changed. Pumps that previously served long queues of Indian vehicles now attend to only a handful of local customers.

“It is an empty fuel station these days due to the increase in fuel prices. Earlier, most of our customers were vehicles from across the border, but now they are not coming. Our fuel tankers have been lying idle for days, and sales have been affected,” said Buddha Singh Allay, a pump operator in Gelephu.

For pump operators, the slowdown has reduced their workload, but it has also cut into business.

Another Pump Operator, Hasta Bahadur Chettri said, “Not many vehicles are coming these days because of the fuel price increase. Most say it is no longer worth it. Even those who come refuel for about Nu 500 and leave after a short visit.”

And the reason is simple. There is no longer a price advantage.

“We cannot travel long distances to refuel here when the prices are almost the same in our country. Fuel prices here have increased by more than Nu 20 recently, while prices in India have remained unchanged,” said Diwas Chettri, a resident of Assam, India.

The trend is consistent in Phuentshogling and Samdrup Jongkhar. An official from a fuel station in Phuentshogling, who requested anonymity, said about 60 per cent of the fuel was consumed by Indian vehicles.

He said, “Now, with the price increase and the halt in exports during Eid, our sales have dropped significantly. A few still come to refuel, but the numbers are minimal compared to before.”

Fuel prices, revised twice a month, surged sharply in mid-March. Diesel prices rose by nearly Nu 38 per litre and petrol by about Nu 22, reflecting global market pressures.

In response, the government has introduced a National Fuel Price Smoothening Framework to manage volatility and protect consumers. As part of the measures, diesel prices have been reduced by Nu 16 per litre, while petrol prices remain unchanged.

For now, the once-busy fuel stations remain quiet. With another price revision due at month’s end, operators and customers alike are waiting to see which way the prices will move.

Bureau reporters

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